We wanted his first investment property to be a blue-chip property that would set him up well. For his budget, we would not be able to afford a house but instead a solid apartment in an excellent suburb was our target.

We found an excellent 2-bedroom apartment advertised for $740,000 in an area within 15km of Sydney CBD, only 2km to the beach, and with great transport links. The property was well located in a quiet leafy street in a well sought-after suburb.

This was a very popular property, in fact there were 3 other offers on this property that were higher than our offer but we were dealing with an agent that we have developed a long standing relationship with who could represent our offer to the client in the best light, and we also understood the motivations of the owner occupier seller. This meant we were able to present better purchase terms than the other offers. When it was all laid out on the table, our lower offer with better terms pulled through and we secured the property for $700,000. A good deal at $40,000 under the asking price.

Not only did we secure an excellent price, but this property stacks up excellent in the numbers, with the rental income of $720/week (well above the suburb’s average of $500/week) meaning a yield of 5.3% which is well above the Sydney average of 3.8% for units, and this suburb’s average yield of 4% for units.